A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product costs and period costs respectively for the first year of coverage? Period Costs A) B) C) D) Product Costs $2,700 $2,160 $1,4401 $7201 $0 $540 $360 $180